Instead of Handling Its Logistics Systems Internally, a Firm Could

question 12

Multiple Choice

Instead of handling its logistics systems internally, a firm could hire a(n) ________ company to manage all or part of its distribution network.

• A) just-in-time
• B) RFID
• C) SKU
• D) TMS
• E) 3PL

Define variance and understand its role in cost control and performance evaluation.

Recognize the significance of financial reporting systems guided by the principle of exceptions.

Understand the concept and application of standard cost systems in accounting.

Comprehend the basis of setting standard costs for manufacturing products.

---

Definitions:

Income for Operations

The earnings generated from a company's regular, core business activities before interest and taxes.

Net Sales

The revenue generated from sales activities after deducting returns, allowances, and discounts, representing the actual income earned by a business from its core operations.

Net Income

The total profit of a company after all revenues, costs, and expenses have been deducted, also known as the bottom line.

Acid-Test Ratio

A financial indicator that assesses the capacity of a business to settle its short-term obligations using its liquid assets.